While you can claim the non refundable portion of the AOC you can’t claim the refundable portion. So if you don’t have much of a tax liability to apply the non refundable portion against it won’t do you much good. Therefore it’s usually better for your parents to claim you if they are otherwise eligible for that credit.
Q. Can student claim AOTC even if they did not fully support themselves provided no one (parents) claim them as a dependent?
A. No. You cannot get the $1000, you may have heard about.
While technically there is a provision that allows a student-dependent to claim a federal tuition credit, from a practical matter it seldom works out. A full time student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) (the $1000 max) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support. It is usually best if the parent claims that credit.
If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable)